PowerPoint PresentationOverviewHistoryA Few HighlightsLeadershipThirst QuencherAthletes They FuelHot CerealsReady-to-eat CerealsOn-the-go SnacksGolden GrainInternationalAnother Great YearFinancial PerformanceInternational SalesMega-brand SalesTop U.S. Food & Beverage Companies in 2000How They CompareSlide 19Social ResponsibilityCommunity InvolvementGoalA Winning Formula For ValueReferencesSlide 25The The Quaker Quaker Oats Oats CompanyCompanyPresented by:Presented by:Maria CabarrusMaria CabarrusScott HolmesScott HolmesRichard RamosRichard RamosDavid SeidDavid SeidOverviewOverview•History•Leadership•Products•Financial performance•Social responsibility•Outlook and future goalsHistoryHistory1856 : Akron, OHFerdinandSchumacher1877 : Ravenna, OHHenry Parsons Crowell1901 : The Quaker Oats Co.A Few HighlightsA Few Highlights•1983 – Gatorade acquired•1987 – Brookstone divested•1991 – Fisher-Price spun of•1994 – Snapple acquired•1997 – Snapple divested•2001 – merger with PepsiCo, Inc.LeadershipLeadershipRobert S. MorrisonChairman, President and CEOThirst QuencherThirst Quencher•Gatorade•#1 sports beverage worldwideAthletes They FuelAthletes They FuelHot CerealsHot Cereals•Record high sales•124-year-old brandReady-to-eat Ready-to-eat CerealsCerealsOn-the-go SnacksOn-the-go Snacks•Fastest growing•New flavors•Top-sellingGolden GrainGolden GrainInternationalInternational•U.S. and Canada•Latin America•Europe and Asia/PacificAnother Great YearAnother Great YearYear ended December 31$ in millions (except per share data)2000 1999Net sales $5,041.0 $4,725.2Net income $360.6 $455.0Number of employees 11,858 11,666Per common shareNet income $2.71 $3.36Dividends declared $1.14 $1.14Average number of common shares outstanding131,689 134,027Source: The Quaker Oats Company 2000 Annual Report (page 18)Financial Financial PerformancePerformanceAnnual SalesSource: The Quaker Oats Company 2000 Annual Report (page 25)15%- 3%12%- 5%6%International SalesInternational SalesSource: The Quaker Oats Company 2000 Annual Report (page 25)1995 1996 1997 1998 1999 2000Mega-brand SalesMega-brand Sales$1.4 billion$2.1 billionSource: www.quakeroats.comTop U.S. Food & Top U.S. Food & Beverage Companies in Beverage Companies in 20002000CompanyTotal Sales in 2000 (In millions of dollars) 1. Kraft 34,679 2. ConAgra Foods Inc.25,386 3. PepsiCo Inc. 20,144 4. Cargill Inc. 22,200 5. The Coca-Cola Co. 20,45810. Sara Lee Corp. 7,91512. Kellogg Co. 6,95419. The Quaker Oats Co.5,041Source: Standard and Poor’s Industry Surveys (July 2001)How They CompareHow They Compare05001000150020002500Net IncomeKraftCoca-ColaSara LeeKelloggQuaker Oats(In millions of dollars)Source: Standard and Poor’s Industry Surveys (July 2001)How They CompareHow They Compare1.380.881.311.452.7100.511.522.53EPS (%)KraftCoca-ColaSara LeeKelloggQuaker OatsSource: Standard and Poor’s Industry Surveys (July 2001)Social Social ResponsibilityResponsibility•Literacy and education•Nutrition•Hunger reliefCommunity Community InvolvementInvolvementGoalGoal•Simplicity•Innovation•PassionA Winning Formula For A Winning Formula For ValueValueTop-lineGrowthInnovationBrandBuildingCost Savings / EfficiencyProfitableGrowthReferencesReferences•The Quaker Oats Company Annual Report 2000•Standard and Poor’s Industry Survey (July